APS : Tuesday, 16 July 2019
ALGIERS-The potential of Algeria, which has recently extended gas contracts with Europe via Italy and Spain, allows it to export liquefied natural gas (LNG) to Asia, Energy Expert Mustapha Mekideche said Tuesday.
“The renewal of long-term gas contracts with European countries, particularly with the two largest customers, Spain and Italy, is good news because it increases our market share in this region,” Mekideche told APS.
According to him, Algeria should now consider integrating the Asian market and strengthening its presence on the African hydrocarbon market, particularly in the sector of LNG.
However, this requires an expansion of national reserves and an increase in conventional and non-conventional natural gas production in order to secure the country’s commitments to its foreign customers and ensure national energy security.
Mekideche also recommended that the remaining “constraints” on the energy sector be removed through the necessary “stabilization” of management and a revision of the hydrocarbon law, in particular.
In response to a question about Algeria’s delay in completing energy transition, he stressed that the fundamentals of this transition were “all seriously behind schedule.”
These fundamentals include the rationalization of the energy consumption model through an appropriate pricing policy, which avoids waste and leakage at borders, as well as energy efficiency in industry, transport and housing.
Regarding the rationalization of the energy consumption model, Mekideche deplored the fact that “to date, no (Algerian) Government has taken the risk of seriously questioning the obsolete structure of energy prices, whether for electricity or fuels. The adjustments made so far are only marginal.”
As for the promotion of renewable energy, he explained the delay in the implementation of the national programme for the development of clean energy by a technological problem since there is no proportionality between the solar concentrate on which the programme is based and the conditions for storing the produced energy.